Controlling Your Emotions When Trading Stocks

When trading stocks there are a lotof stressful situations that can occur. You need to be able to control your emotions and make wise buy and sell decisions. If you can’t control your emotions then you will probably get freaked out the first time something bad happens and you will end up making a bad decision out of that “freak out.”

When trading stocks there are a lotof stressful situations that can occur. You need to be able to control your emotions and make wise buy and sell decisions. If you can’t control your emotions then you will probably get freaked out the first time something bad happens and you will end up making a bad decision out of that “freak out.”

This is easier said than done though. We are humans after all. But how exactly are we able to control our emotions and stop them from taking us over?

Well here are some stock tips help you do just that.

1. Trade With Small Positions

First of all it just makes bad sense to put all of your account into one or two positions. That is why most people recomend not putting too much of your account into one position. But there is another reason for this. The smaller your position when compared to your account’s value, the easier it will be to trade it.

You wouldn’t think twice about risking a quarter on a 50:50 bet would you? But would you risk $10,000 on the same bet? The more you bet the more emotional the trade becomes and the more you just want to pull the plug if something where to happen.

2. Take a Break

The next thing that you can do is to simply walk away from the computer and not think about it. If you place a trade then it is important to not check on it a million times throughout the course of a day, but to instead go do something else and keep your mind busy. Check your position only as much as you need to in order to raise your stops or manage everything.

3. Don’t Consider it Your Money Until it is Taken Out

It is always nice to check your account balance so that you know exactly how much money you have in your account. But remember none if it is really yours until you take it out. Until then it is still money on the table, so if you lose some of it don’t start revenge trading and getting bad because that “evil market stole your money.”

If you consider the stock market a game that you really want to win and do not consider it actual money then you will learn from your mistakes when you make them instead of jumping off of a bridge.

For more on the Stock Market For Newbies visit Shaun’s site about the Stock Market Basics Check here for free reprint licence: Controlling Your Emotions When Trading Stocks.

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